Kindred Group has unveiled its financial results for the second quarter and the first half of 2024, showcasing impressive growth and strategic advancements.
Revenue Growth and Tournament Impact
In Q2 2024, Kindred Group reported a notable increase in total revenue, rising by 7% year-on-year to £327.6 million ($422.8 million). This growth was significantly bolstered by the UEFA European Championships 2024 (Euro 2024), which played a pivotal role in driving revenue. The Euro 2024 tournament led to the highest revenue ever recorded for Kindred from a sporting event, surpassing the previous record set during the FIFA World Cup 2022. This was a 16% increase compared to the World Cup revenue.
Gross Winnings Revenue and Market Expansion
Gross winnings revenue from B2C operations saw a 6% rise to £317.2 million. The company also experienced a 16% revenue growth in its B2B operations, particularly through Relax Gaming. This reflects strong performance across all product segments, with gross winnings revenue in locally regulated markets reaching an all-time high.
Profit and Operational Efficiency
Profit after tax for the quarter stood at £44.5 million, marking a robust financial outcome. Underlying EBITDA saw a significant increase of 32%, reaching £73.6 million. This improvement highlights the company’s operational efficiency and effective cost management.
Customer Engagement and Growth
The quarter also saw a 12% increase in the number of active customers, reaching a total of 1,749,611. This rise in active customer base reflects the successful engagement strategies and the enhanced appeal of Kindred’s offerings.
Half-Year Performance Summary
For the first half of 2024, Kindred reported a 4% increase in total revenue, amounting to £635.3 million. Gross winnings revenue from B2C operations also grew by 3%, totaling £614.8 million. Underlying EBITDA experienced a notable rise of 26%, reaching £132.9 million. Profit after tax for H1 was reported at £75.9 million, underscoring a strong overall performance.
Strategic Execution and Market Resilience
Nils Andén, CEO of Kindred, commented on the results, expressing satisfaction with the company’s performance. He highlighted the resilience and strategic execution that contributed to the positive results. According to Andén, the strong growth across top markets and the boost from Euro 2024 were key factors driving the company’s success.
The second quarter’s performance was particularly impressive, with strong sportsbook activity and a record high sportsbook margin of 12.1%, driven by favorable results and a significant increase in Bet Builder activity.
Responsible Gambling Metrics
In addition to its financial achievements, Kindred Group has continued its commitment to responsible gambling. This week, Kindred, along with Swedish operators ATG and Svenska Spel, announced the continuation of their joint initiative to publish responsible gambling (RG) metrics for the Swedish market. This initiative reflects the company’s dedication to promoting responsible gambling practices and enhancing transparency in the industry.
Revenue Drivers and Market Trends
The strong revenue growth in Q2 2024 can be attributed to several factors, including the impact of Euro 2024 and the successful expansion of Kindred’s product segments. The significant rise in B2B revenue, particularly through Relax Gaming, indicates a robust performance across diverse operational areas.
The record high sportsbook margin and the increase in active customers reflect effective customer engagement strategies and operational excellence. These factors collectively contribute to Kindred’s strong market positioning and financial health.
Kindred’s positive performance in the first half of 2024 and its strategic initiatives suggest a promising outlook for the remainder of the year. The company’s focus on responsible gambling and its continued investment in market expansion and product development are likely to drive sustained growth and operational success.
Kindred Group’s Q2 and H1 2024 results underscore a period of significant achievement and strategic progress. The combination of record revenues, strong growth across various segments, and commitment to responsible gambling positions Kindred as a leading player in the industry with a solid foundation for future success.